This may seem initially vague, but that answer will be different for everyone. Four factors play a major part in the ultimate selling price of your home, and those four factors together will determine the negotiating guidelines that are right for you.
1. What is the market value of your home? If your home's value is estimated from your Realtor to be at $600,000, for example, and you have an offer on the table that is substantially less, there may not be any room to negotiate, or any need to , for that matter. If your offer comes in at $620,000 for example, you may just want to accept it right then and there, or just try for a little more. (It never hurts!)
2. How much is your home listed for? Let's say that your home that is valued at $600,000 is actually listed for $650,000, because you wanted to leave room for negotiations. If someone came in with an offer under $600,000 does it mean that they are trying to lowball you? Absolutely not. They just want to get you to accept an offer on your home that is much more in line with market value. Optimally, you should never put in "negotiating room" on your asking price. Your home will end up being labeled as overpriced, and you will not be able to compete properly with the homes in your expanded price range. Buyers buy on emotion. If they really want your home, they will pay your price, as long as its within market reason, and they have the financial wherewithal to buy it.
3. Does your home need any structural repairs or obvious cosmetic updates? If a repair costs $2,500, subconsciously most buyers will end up doubling that and reduce their offering price by the doubled amount. It might fare better that you acknowledge that the home needs some structural or cosmetic repairs, and state clearly that you have already accounted for that in the price, do you don't get hit in the wallet twice for one repair.
4. How badly do you want to sell? If you are not getting a lot of offers, or getting very few, that saying "A bird in the hand is worth two in the bush", is much more relevant to you. Just for one quick example, think about each monthly mortgage payment you make, and how much it costs you to maintain your home while it is on the market. If you are sure that the risk of not selling is less than the perceived financial loss of selling, then hang on and wait for another buyer. But remember to look at your actual bottom line- that is your net proceeds after your expenses.
If the bottom line in your mind is that you won't selll for a dime less than $600,000, your mortgage is $4,000 per month and you have already waited four months to get an offer of $585,000, you have actually spent $16,000 to get to that point (four months worth of mortgage) for a net of $584,000. If you end up waiting yet another four months and settle for $595,000, you have spent $32,000 to get to that point.
That $595,000 is worth less than the $585,000 just 120 days ago. So it is important to look at your actual net, after you take into account all of your expenses.
But truly, the answer to how much you should negotiate falls squarely on your shoulders, taking into account these four items, and it is your decision. Let no one talk you into or out of anything. What is best is that you have someone experienced (like me!) give you the best advice possible. Contact me anytime. I am ready to assist you with all of your real estate needs.